Fuel price hike inevitable: Govt

The govt on Monday said the hike in prices of auto and cooking fuel was inevitable and refuted charges that it raised fuel prices despite state-owned retailers posting profits last fiscal.

State-run fuel retailers struggle to find funds for expansion, says oil min he government on Monday asserted that the price hike in auto and cooking fuel was inevitable and refuted charges that the government raised fuel prices despite state-owned retailers posting profits last fiscal.

The profits made by state-run fuel retailers IOC, BPCL and HPCL were inconsequential when compared to the massive scale of their turnover and the profits were possible only after their financial burden due to selling cheap fuel was compensated by the state and upstream oil companies, according to data released by the petroleum ministry .

Indian Oil Corporation posted a profit after tax of Rs 10,221 crore, which was only 3.7% of its turnover. BPCL recorded a profit after tax of Rs 1,538 crore, which was 1.1% of its turnover, while HPCL posted a profit of Rs 1,301 crore, which was merely 1.2% of its turnover, ministry officials said.